Accounting policies
for the year ended 30 September 2009

 
 

The consolidated financial statements, comprising Reunert, its subsidiaries, joint ventures and associates (together referred to as “the group”), incorporate the following principal accounting policies, set out below.

STATEMENT OF COMPLIANCE

The consolidated financial statements have been prepared in accordance with IFRS and interpretations of those standards as issued by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) of the IASB, the requirements of the JSE Limited and the requirements of the Companies Act, Act 61 of 1973, as amended.

At the date of these financial statements, the following standards and interpretations were in issue but not yet effective:

Standards and interpretations   Details of amendment   Effective for annual periods beginning
on or after  
IFRS 1 First time Adoption of International Financial Reporting Standards  
  • Measurement of the cost of investments in subsidiaries, jointly controlled entities and associates when adopting IFRS for the first time.  
1 July 2009  
IFRS 2 Share-based Payment  
  • Amendments to vesting conditions and cancellations
  • Clarification of scope of IFRS 2 and IFRS 3 revised
  • Accounting for group cash-settled share-based payment transactions – clarity of the definition of the term “group”  
1 January 2009
1 July 2009
1 January 2010  
IFRS 3 Business Combinations  
  • Amendments to accounting for business combinations  
1 July 2009  
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations  
  • Plan to sell the controlling interest in a subsidiary
  • Disclosures of non-current assets (or disposal groups) classified as held for sale or discontinued operations
  • Amendments resulting from IFRIC 17 for assets held for distribution to owners  
1 July 2009
1 January 2010
1 July 2009  
IFRS 7 Financial Instruments: Disclosures  
  • Presentation of finance costs
  • Amendments dealing with improving disclosures about financial instruments
  • Amendments enhancing disclosures about, for value and liquidity risk  
1 January 2009
1 January 2009
1 January 2009  
IFRS 8 Operating Segments  
  • New standard on segment reporting (replaces IAS 14)
  • Disclosure of information about segment assets  
1 January 2009
1 January 2010  
IAS 1 Presentation of Financial Statements  
  • Amendments to structure of financial statements
  • Current/non-current classification of derivatives
  • Current /non-current classification of convertible instruments  
1 January 2009
1 January 2010  
IAS 7 Statement of Cash Flows  
  • Cash flows from assets held for rental classified as operating activities
  • Classification of expenditures on unrecognised assets  
1 January 2009
1 January 2010  
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors  
  • Status of implementation guidance  
1 January 2009  
IAS 10 Events after the Reporting Period  
  • Dividends declared after the end of the reporting period
  • Amendment resulting from the issue of IFRIC 17  
1 January 2009
1 July 2009  

IAS 16 Property, Plant and Equipment  

  • Recoverable amount
  • Sale of assets held for rental  
1 January 2009  
IAS 17 Leases  
  • Classification of leases of land and buildings  
1 January 2010  
IAS 18 Revenue  
  • Costs of originating a loan  
1 January 2009  
IAS 19 Employee Benefits  
  • Curtailments and negative past service costs
  • Plan administration costs
  • Replacement of term ‘fall due’
  • Guidance on contingent liabilities  
1 January 2009  

IAS 20 Accounting for Government Grants and Disclosure of Government Assistance  

  • Government loans with a below-market rate of interest
  • Consistency of terminology with other IFRS  
1 January 2009  
IAS 23 Borrowing Costs  
  • Amendment requiring capitalisation model only
  • Components of borrowing costs  
1 January 2009  
IAS 27 Consolidated and Separate Financial Statements  
  • Amendment dealing with measurement of the cost of investments when adopting IFRS for the first time
  • Consequential amendments from changes to business combinations
  • Measurement of subsidiary held for sale in separate financial statements  
1 January 2009
1 July 2009  
IAS 29 Financial Reporting in Hyperinflationary Economies  
  • Description of measurement basis in financial statements
  • Consistency of terminology with other IFRS  
1 January 2009  
IAS 31 Interests in Joint Ventures  
  • Required disclosures when interest in jointly controlled entities are accounted for at fair value through profit or loss
  • Consequential amendments from changes to business combinations  
1 January 2009
1 July 2009  
IAS 34 Interim Financial Reporting  
  • Earnings per share disclosures in interim financial reports  
1 January 2009  
IAS 36 Impairment of Assets  
  • Disclosure of estimates used to determine recoverable amount
  • Unit of accounting for goodwill impairment test  

1 January 2009
1 January 2010  

IAS 38 Intangible Assets  
  • Advertising and promotional activities
  • Unit of production method of amortisation
  • Additional consequential amendments arising from revised IFRS 3
  • Measuring the fair value of an intangible asset acquired in a business combination  

1 January 2009
1 July 2009  

IAS 39 Financial Instruments: Recognition and Measurement  
  • Reclassification of derivatives into or out of the classification “at fair value through profit or loss”
  • Designation and documenting hedges at the segment level
  • Applicable effective interest rate on cessation of fair value hedge accounting
  • Clarifies hedge accounting issues:
    – Inflation in a financial hedged item
    – A one-sided risk in a hedged item
  • Amendments for embedded derivatives when reclassifying financial instruments
  • Treating loan prepayment penalties as closely related embedded derivatives
  • Scope exemption for business combination contracts
  • Cash flow hedge accounting  

1 January 2009
1 July 2009
Annual periods ending on or after 30 June 2009
1 January 2010  

IAS 40 Investment Property  
  • Property under construction or development for future use as investment property
  • Consistency of terminology with IAS 8
  • Investment property held under lease  
1 January 2009  
IFRIC 9 (amended) Re-assessment of Embedded Derivatives  
  • Scope of IFRIC 9 and revised IFRS 3  
1 July 2009  
IFRIC 16 (amended) Hedges of a Net Investment in a Foreign Operation  
  • Amendment to the restriction on the entity that the entity can hold hedging instruments  
1 July 2009  
IFRIC 17 Distribution of Non-cash Assets to Owners  
  • Interpretation  
1 July 2009  
IFRIC 18 Transfers of Assets from Customers  
  • Interpretation  
1 July 2009  

The impact of the adoption of the above standards and interpretations has not yet been determined.